Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ Post reports $35.6 mln loss on quakes, write downs

NZ Post reports $35.6 mln loss on quakes, write downs, sluggish economy

By Jason Krupp

Aug. 26 (BusinessDesk) - New Zealand Post Group posted a full-year net loss of $35.6 million as its balance sheet bore the brunt of a $29.1 million hit related to the Christchurch earthquakes, the exit from Australian assets, increased bad debt provisioning, and the sluggish economy.

The earnings loss for the 12 months ended June 30 compares to a profit of $1.3 million in the previous year, according to a statement from the state-owned postal services operator. The earnings loss before interest and tax was $25 million in the period, down from an EBIT surplus of 47.4 million previously. Revenue was $1.27 billion, up from $1.2 billion.

In May the company flagged that it would substantially miss its net profit target of $60.8 million for the year, but gave no guidance on the exact range.

Earnings were impacted by an increase in Kiwibank bad debt provisioning of $67 million in response to the impacts of depressed economic conditions and the Christchurch earthquakes, the $35 million write down to its Parcel Direct Group unit in Australia, and restructuring costs of $12.3 million.

Stripping out items, underlying profit was $41.7 million after tax, down from $73.6 million a year ago.

"While the result is very disappointing, the group is confident of a return to a positive net profit after tax in the coming year," said chief executive Brian Roche. "The group has taken necessary and prudent actions which have seen us create a solid foundation to reinvigorate the business."

The company said the majority of the significant items affecting the business were of a non-cash nature, and were not expected to have a material effect on the group’s ability to meet its dividend or debt obligations.

"There is a need for significant change in the way we operate parts of our business if we are to be sustainable," Roche said. "We have made substantial progress in implementing some of those changes and will continue the process in the coming year."

The Standard and Poor’s credit rating is AA- on stable outlook. The company will pay the government a final dividend of $2.075 million, down 67.7% from a year earlier.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


Mediaworks: Reaches Agreement To Sell TV Operations To Discovery, Inc.

New Zealand’s largest independent commercial broadcaster MediaWorks and the global leader of real-life entertainment Discovery Inc. (“Discovery”) are pleased to announce they have reached a binding agreement regarding the sale of MediaWorks’ ... More>>


Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>


SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>


FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>